FDI in Retail Sector Good or Bad for India ( Walmart , Tesco)

1. FDI in Retail Sector Good or Bad for India (Walmart, Tesco) Just Spare 5 Minutes of your now for your better Tomorrow. Dignity of 120 crore People Contact uniq@live.in

2. Benefits: • Everyday needs at cheap price. • Development of Retail & Supply chain Infrastructure. • New Jobs May be created (but loss of jobs in unorganised sector) • Food waste will be controlled.

3. But as nothing comes free, no American will save Indian, the cost as follows • Indian retail market worth 4 Trillion US$, that is ₹ 153 lakhcrore, • Expected Market share of Foreign Retailers 75% (in 2007 in U.K 93% of market share was held by multi branded shops) • Forecasted Profit 15% (please look at the Walmart Profits) • 15% of ₹ 114.75 lakhcrore is ₹ 17.3 lakhcrore

4. For a country Like India, it is shame if it cannot develop infrastructure that Walmart can. • 51% of 17.3 (8.83 LakhCrore) will be ripped-off from Indians by foreigners to their nations. • By 2014 market worth 9 Trillion US $. So around ₹17.5 Lakhcrore will not be circulated inside India and shared by tens and thousands of people, if we open this FDI flood gate

5. Here comes the real pain. • Special teams of Foreign Retail Corporate Companies in every country will import cheapest product, so we can benefit of having that product for cheap. • Cost : closure of local manufacturing units, and the story will continue. • Manufacturing jobs will be cut. • Trade imbalance due to high import.

6. Now profits are shared by lakhs of Indians, later walmart and tesco alone will take. • Government will need to spend more on benefits for jobless people. • Our decades of middle class savings will go to foreign in the form of profit • Again western will rule our economy indirectly. The whole supply chain and demand will be decided by Walmart, Tesco or whatever etc. So in long term, it will not benefit us, but the foreign company.

7. U.K one the examples of having Walmart etc.. • Suppliers, who supply Milk, Vegetables, Cloths, A to Z are not happy, they get for bread and butter only. • So why they supply? • because they cannot sell their products to anyone except to these retail corporate companies as they are the only available and major controllers of retail market. • In 2007 in U.K 93% of market share was held by just 8 companies, 65% by 4 companies

8. .... Effects (one of the reasons) • In U.K, Retail companies imports cheese, butter, Vegetables, wine, Pizza and many more from Italy, France, Germany and from many countries. • Those products was previously produced locally before these companies established their presence. • On 25.11.2011 British policy makers officially said that economy will take 5.5 years to recover to pre-recession levels. The country is struggling to boost its output by 0.5%.

9. How this happened? • Not in a year or two, but took decades, companies sourced from many other countries like China for pet food, milk powder and much more. • It imported most of its retail needs from other countries, Local people lost their jobs, and country is spending more on benefits. People already lost their reserves, but inflation is being somewhat fair as the only benefit of having Multi branded shops. Now the country is struggling to reconstruct its manufacturing sector and create jobs.

10. ..but there is difference between India and U.K • Although U.K imports so much from so many countries, the bosses are Europeans and Americans. • Major imports from South America, Africa and few from China are exported by the same companies. So the buyer and seller both are the same. • So, in India, an American or European will trade and earn money, even if it sells only Indian made products. Same like pre 1947, just the tax will remain.( if we can manufacture, why can’t we sell?)

11. ...what are the Caps. • Minimum 30% should be sourced from small and medium scale industries • No clues about Import restrictions. • Stores can be established only in cities that has 10 lakh plus population. (India will over take China and many more cities will be added in years to come) • 50% of investments should be in rural areas. (it is possible, even if we don’t put such restrictions, they will do it to save money)

12. Let us see why Government is doing this, that eve you and me know • Because we are hungry for FDI now, • India’s Inflation i.e price is largely driven by Food and basic needs, not just by interest rates. • India will be facing the highest Inflation than many other countries for few years to come according to Morgan Stanley. • So allowing FDI in this sector, it will help us to control inflation, (but I’m not ready to loose that Gandhi Ji, got me)

13. What is the remedy ?If we can manufacture why can’t we sell? • India should be ready to take aggressive step towards developing Supply chain management, it is shame that if it cannot do that Walmart can. • We people of India should be ready to face tuff time for few more years to enjoy the full Golden Egg laying hen. • FDI is like giving your own land for someone on lease.(accessing Indian Middle class market is renting gold egg laying hen and so America welcomed it, they are not fools)

14. ..... • We can allow FDI in the luxury areas, like Luxury cars, Luxury watch etc, because it targets the rich • Technology, Power & Energy (we already gave for nuclear power), we need to develop it ourselves, but for now advantages may outperform. • Allowing them in retail area where those company can have access to our crores of middle class hard working innocent Indians, then their savings will be converted as profits and will be taken to other country, will not be circulated or shared and owned locally by Indians

15. ----Finally • I will die as a dignified Indian. • I will not let my country’s major GDP to be controlled by foreigner and foreign companies. • I’m not ready to eat full meals that foreigner gives, although I’m ready to eat porridge if an Indian gives. • Every Indian can eat royal meals every day in near future if we sustain now, American will not save Indian, Indian should. • Don’t just say Jai Hind, unless until you start work for yourself.